Bigger is Better - Top Furniture Retailers Seeing Higher Sales
According to a recent report in Furniture Today, the top 10 furniture retailers saw an 11% increase in sales in 2014 over 2013, while the top 100 retailers experienced sales increases of 8.3%. This is the fifth straight year that the top 100 have experienced sales growth. Overall furniture sales have grown from $50.5 billion in 2013 to $52.8 billion in 2014, a 4.5% increase overall. This means that the top 100's gains has come mostly at the expense of smaller furniture retailers.
It isn't just sales that are growing, but also locations as well. The top 100 retailers opened a combined 711 stores in 2014, a 7.4% increase in the number of locations, with the top 10 leading way with a 22% increase in new stores. 2013 saw only 321 new stores open for the top 100. While many of these are actual new stores, many of them also came thru acquisitions. Mattress Firm alone added over a hundred new stores thanks to acquiring two other chains that were in last years top 100 list.
The top 100 retailers were able to account for 79% of all sales for US furniture stores. They accounted for 37% of overall furniture sales nationwide. This takes into consideration not just furniture stores, but any other stores, whether brick and mortar or online, or catalogs that sell furniture such appliance stores, department stores, rental stores, warehouse clubs, and many more.
Leading the way in the top 100 were the specialty stores. There are 27 specialty stores in the top 100, and they combined for net sales increases of 10.4%, while conventional furniture stores saw net sales increases of 6.5%. Even more amazing is that these 27 stores accounted for 45% of sales for the top 100. It was the 10 bedding specialists in the top 100 that were able to account for most of these gains. Bedding specialists saw a net sales increase of 15.6% while they added 555 new stores, an increase of 14.2%.
The top 10 stores are as follows:
- Ashley Furniture HomeStore
- IKEA
- Williams-Sonoma
- Rooms To Go
- Mattress Firm
- RH
- Berkshire Hathaway [furniture division]
- Pier 1 Imports
- Raymour & Flanigan
- Sleep Number
With the big names taking a higher share of sales volume away from the smaller stores, it is more important than ever that you are able to get your products into their stores in order to grow your business. To get into these stores you need to be able to give them terms on large orders. Let DSA Factors factor your receivables and improve your cash flow so your business can grow. With our help you no longer need to worry about cash flow or credit, and can instead focus on sales. Give us a call today at 773-248-9000.
This data is based on furniture, bedding, and accessories sales.
